How is Gross PUD Revenue defined for Cd One Price Cleaners?

According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, Gross PUD Revenue is defined as the gross revenue generated by the Pickup and Delivery (PUD) Services, without any deduction for fees or costs associated with providing these services. This definition is important because several fees are calculated based on this revenue.

Specifically, Cd One Price Cleaners franchisees offering PUD services must pay several fees based on Gross PUD Revenue. These include a royalty fee of 6.5% of Gross PUD Revenue, contributions to the Marketing Fund, additional contributions to the Marketing Fund for Customer Acquisition Payments (3.5% of Gross PUD Revenue for each Standard Customer and approved Non-Standard Customer), additional contributions to the Marketing Fund for Customer Development and Retention Payments (2% of Gross PUD Revenue), and a technology fee of 5% of the Gross PUD Revenue paid to COW for Order Processing Services.

For a prospective Cd One Price Cleaners franchisee, understanding this definition is crucial for accurately forecasting revenue and expenses related to PUD services. The franchisee needs to factor in these percentage-based fees when evaluating the profitability of offering PUD services. The fact that Gross PUD Revenue does not allow for deductions of any costs associated with providing the PUD Services means that franchisees will pay fees on the total revenue before accounting for expenses like driver costs, supplies, and production costs.